NZD/USD shrugs off NZ Treasury's dismal growth forecast, remains bid at session highs

• NZD/USD is trading at one-month highs near 0.6445. 
• New Zealand'sTreasury believes growth may fall below budget forecasts. 
• Upbeat China data is likely helping the Kiwi stay bid. 

The NZD/USD pair remains bid at session highs near 0.6445, the highest level since Nov. 4, despite New Zealand Treasury's pessimistic comments on economic growth.

"On balance, weaker-than-forecast investment and services exports are likely to see overall New Zealand GDP growth fall below Budget forecasts," Treasury's monthly economic indicators report said.

So far, the Kiwi has shown little signs of stress, possibly because the Treasury took note of the improvement in the housing sector and PMIs hinting at economic recovery.

Also, the upbeat China data released over the last 48 hours are helping the NZD stay bid. The Caixin PMI, which surveys the small and medium-sized export-oriented units, rose to 51.8 in November from October's 51.7 to register the fastest expansion in three years. The official PMI released on Saturday also printed above 50 to mark the first expansion in 13 months.

Looking forward, the pair could extend gains to key resistance at 0.6474. A close higher would confirm an inverse head-and-shoulders breakout. The rise to 0.6474, however, will likely remain elusive if the investor focus shifts to fresh uncertainty on the US-China trade front.

Technical levels